Minutes of the sixth meeting of the Smart Grids Working Group
Minutes of the sixth meeting of the Smart Grids Working Group
Minutes of the sixth meeting of the Smart Grids Working Group
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Issue 1 ENSG SGWG 2009-13<br />
Present:<br />
Co-Chairs<br />
MINUTES OF THE SIXTH MEETING OF THE<br />
ENSG SMART GRIDS WORKING GROUP<br />
Held at BIS Conference Centre, Victoria Street, London, SW1H 0ET<br />
10:00-12:30 Thursday 10 th December 2009<br />
DECC Giles Scott<br />
Ofgem Gareth Evans (Chair on <strong>the</strong> day)<br />
Members<br />
ERA Jason Brogden<br />
Energy Networks Association Alan Claxton<br />
Intellect Mike Collins<br />
CE Electric Alan Creighton<br />
OLEV Will Cutler<br />
<strong>Smart</strong>er Grid Solutions Bob Currie<br />
Central Networks Jeff Douglas<br />
RWE Npower Chris Harris<br />
Carbon Trust Martin Johnston<br />
Intellect Gavin Jones<br />
Scottish Power Diyar Kadar<br />
RLtec Paul Lazerevic<br />
Centrica Energy Fiona Navesey<br />
EDF Dave Openshaw<br />
SEDG Goran Strbac<br />
Also in attendance<br />
Accenture Robert Hopkin<br />
Accenture Chris Maynard<br />
Accenture Rick Hanks<br />
DECC (<strong>Smart</strong> Meter Team) Ge<strong>of</strong>f He<strong>the</strong>rick<br />
DECC Andrew Perry<br />
DECC John Christie<br />
AEAT (Secretariat) Chris Naish<br />
Apologies<br />
National Grid Michael Edgar<br />
Intellect Nick Kalisperas<br />
Electricity North West Mike Kay<br />
ETI Richard Knight<br />
CLG Bob Ledsome<br />
Carbon Trust Gary Staunton<br />
Western Power Distribution Nigel Turvey<br />
AEP Networks <strong>Group</strong> Barbara Vest<br />
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1 Welcome and Introduction<br />
1.1 The Chairman welcomed <strong>the</strong> participants, introduced those who were new to<br />
<strong>the</strong> group and outlined <strong>the</strong> objectives for what was currently planned to be <strong>the</strong><br />
last <strong>meeting</strong> <strong>of</strong> <strong>the</strong> group. These objectives were: to sign <strong>of</strong>f <strong>the</strong> ENSG <strong>Smart</strong><br />
Grid Route Map slide pack; to receive an update on <strong>the</strong> launch <strong>of</strong> <strong>the</strong> DECC<br />
<strong>Smart</strong> Grid Opportunities paper and <strong>Smart</strong> Metering consultation response; to<br />
receive an update on DPCR5 (in particular <strong>the</strong> associated Low Carbon<br />
Network Fund (LCNF)) and to receive an update from <strong>the</strong> DECC <strong>Smart</strong> Meter<br />
<strong>Group</strong>.<br />
1.2 Apologies for absence and alternates attending were noted (see previous<br />
page).<br />
2 <strong>Minutes</strong> <strong>of</strong> last Meeting and Actions<br />
2.1 The Chairman asked <strong>the</strong> group if <strong>the</strong>y had any comments on <strong>the</strong> minutes.<br />
2.2 No items were raised. The minutes were <strong>the</strong>refore formally approved and<br />
would be placed on <strong>the</strong> ENSG website.<br />
2.3 The actions from <strong>the</strong> last <strong>meeting</strong> were agreed as completed or were<br />
addressed in <strong>the</strong> agenda items <strong>of</strong> this <strong>meeting</strong>. The actions were:<br />
Action 1: Accenture to produce audio file to accompany ENSG Vision slides<br />
and circulate to <strong>the</strong> group. Accenture reported that <strong>the</strong>y had completed an<br />
audio file and that <strong>the</strong>y would send this out to <strong>the</strong> group via <strong>the</strong> secretariat.<br />
Members could comment as to whe<strong>the</strong>r <strong>the</strong>y judged <strong>the</strong> file to be a useful<br />
addition to <strong>the</strong> Vision slides.<br />
Action 1: Accenture to send audio file to secretariat for transmission to <strong>the</strong><br />
group.<br />
Action 2: Secretariat to confirm <strong>the</strong> details for <strong>the</strong> ‘Open Door’ <strong>meeting</strong> on 30 th<br />
November and <strong>the</strong> current <strong>meeting</strong>. This action had been completed.<br />
Action 3: ENA to send a link or a copy <strong>of</strong> <strong>the</strong> EU <strong>Smart</strong> Grid Mission<br />
document to <strong>the</strong> secretariat for transmission to <strong>the</strong> group. This action was<br />
completed.<br />
Action 4: Members wishing to make final changes to Vision slides to send to<br />
Accenture by am on 19 th November. Completed.<br />
Action 5: Members to prioritise barriers on slide 17 in <strong>the</strong> pack from <strong>the</strong><br />
<strong>meeting</strong>. Completed.<br />
Action 6: Members to note date and time <strong>of</strong> ‘Open Door’ teleconference<br />
<strong>meeting</strong> – 19 th November and 10:00 to 11:00 am. Completed.<br />
3 DECC Feedback on <strong>Smart</strong> Meter and <strong>Smart</strong> Grid Opportunities<br />
Launch and ENSG Vision Sign-Off.<br />
3.1 The DECC Chairman reported that <strong>the</strong>re had been a successful launch <strong>of</strong> <strong>the</strong><br />
<strong>Smart</strong> Meter consultation response, <strong>the</strong> ‘<strong>Smart</strong> Grid: The Opportunities’<br />
document and <strong>the</strong> <strong>Smart</strong> <strong>Grids</strong> Capital Grant Programme on 2 nd December.<br />
The ENSG <strong>Smart</strong> Grid Vision had been published on <strong>the</strong> same day. The<br />
launch took place at General Electric (GE) <strong>Smart</strong> Grid demonstration facility<br />
at Bracknell. The facility consists <strong>of</strong> around 10-12 individual stations around a<br />
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conference room demonstrating various aspects <strong>of</strong> smart grids – devices in<br />
<strong>the</strong> home, smart meters, renewables, voltage control etc. There had been<br />
wide and positive press coverage with <strong>the</strong> BBC broadcasting an item from <strong>the</strong><br />
NG control centre at Wokingham.<br />
3.2 The DECC chairman thanked <strong>the</strong> group for <strong>the</strong>ir significant efforts in<br />
delivering <strong>the</strong> ENSG <strong>Smart</strong> Grid Vision. This document was <strong>the</strong> key evidence<br />
base that supported <strong>the</strong> ‘consumer friendly’ and necessarily simplified DECC<br />
‘The <strong>Smart</strong> Grid: Opportunities’ document.<br />
3.3 A representative <strong>of</strong> <strong>the</strong> DECC <strong>Smart</strong> Meter team briefly summarised related<br />
smart meter developments: Ofgem have organised a briefing event on smart<br />
meters for 16 th December where <strong>the</strong>y will set out <strong>the</strong>ir programme for smart<br />
meter developments – Ofgem are managing implementation <strong>of</strong> this work for<br />
Government. They are building up <strong>the</strong>ir team and have consultancy support<br />
in place. There is now several months work to be undertaken before a ‘way<br />
forward’ prospectus is published in summer 2010. This prospectus should<br />
include details on <strong>the</strong> functionality <strong>of</strong> <strong>the</strong> smart meters etc.<br />
4 Ofgem DPCR5 Final Proposals<br />
4.1 The Ofgem Chairman introduced this item by saying he would focus on <strong>the</strong><br />
Low Carbon Network Fund (LCNF) which was to be a key part <strong>of</strong> DPCR5<br />
implementation.<br />
4.2 The Chairman explained <strong>the</strong> approach taken by <strong>the</strong> LCNF. This was<br />
essentially to ‘de-risk’ LCNF projects to a level compatible with <strong>the</strong> returns<br />
available to a DNO. This route has been selected in preference to <strong>the</strong><br />
alternative approach <strong>of</strong> <strong>of</strong>fering a premium rate <strong>of</strong> return.<br />
4.3 The fund would provide discretionary rewards based in-part on pre-agreed<br />
success criteria for projects.<br />
4.4 There are to be two tiers <strong>of</strong> project. Tier 1 is for lower value projects and<br />
Ofgem plans to have <strong>the</strong> Tier 1 part <strong>of</strong> <strong>the</strong> fund in place by 1 st April 2010. Tier<br />
2 involves a competitive process and will require more detailed Governance,<br />
an assessment process, a panel <strong>of</strong> experts etc so will involve a longer<br />
timescale – <strong>the</strong> aim is to publish a Governance paper for consultation early<br />
next year.<br />
4.5 The proposals at present involve creating a fund that supports a number <strong>of</strong><br />
significant projects – it is felt <strong>the</strong> funds should not be spread too thinly across<br />
a larger number <strong>of</strong> smaller projects.<br />
4.6 The group made <strong>the</strong> following comments:<br />
There was concern that if ‘duplication’ was ruled out it would remove<br />
significant benefits from potential ‘distributed’ large projects where similar<br />
applications were trialled under a range <strong>of</strong> circumstances and in different<br />
DNO regions etc.<br />
The value <strong>of</strong> ‘duplication’ was discussed. Ofgem confirmed that <strong>the</strong>y had<br />
modified <strong>the</strong> current proposals to include <strong>the</strong> phrase ‘…avoid no<br />
unnecessary duplication..’ hence opening <strong>the</strong> door to similar projects in<br />
different locations where <strong>the</strong> benefits <strong>of</strong> carrying <strong>the</strong>se out could be<br />
clearly demonstrated. Ofgem’s key test for an LCNF project is what new<br />
learning it will deliver. The group agreed that <strong>the</strong>re were benefits from<br />
similar projects across DNOs as <strong>the</strong>y were likely to bring benefits in<br />
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development <strong>of</strong> expertise, building up <strong>of</strong> delivery teams, cross fertilisation<br />
<strong>of</strong> ideas and experience etc.<br />
4.7 The Chairman thanked <strong>the</strong> group for <strong>the</strong>ir input and introduced <strong>the</strong> next<br />
agenda item.<br />
5 The ENSG <strong>Smart</strong> Grid Route Map<br />
5.1 The Chairman asked Accenture to summarise <strong>the</strong> input received since <strong>the</strong><br />
last <strong>meeting</strong> and in particular <strong>the</strong> results from <strong>the</strong> ‘Open Door’ teleconference<br />
session on 30 th November.<br />
5.2 Accenture opened <strong>the</strong>ir report by proposing to deal with <strong>the</strong> broader<br />
questions over <strong>the</strong> route map first and to move on to more specific, slide-byslide<br />
comments afterwards. This was agreed.<br />
5.3 The question was posed – ‘was <strong>the</strong> document doing what was<br />
needed/specified (e.g.) in <strong>the</strong> Terms <strong>of</strong> Reference?<br />
5.4 The following comments were made:<br />
The route map contains all <strong>the</strong> key points and information however it is<br />
presented in a very information dense form that is not readily accessible<br />
by anyone not directly involved in <strong>the</strong> area.<br />
There was probably a need for a more accessible ‘Executive Summary’<br />
type <strong>of</strong> document, summarising <strong>the</strong> key issues etc , most likely in text<br />
format but also possibly with a slide pack. There needs to be a ‘story’ to<br />
sell <strong>the</strong> route map in <strong>the</strong> same way as for <strong>the</strong> Vision.<br />
The ENSG will be asked to sign <strong>of</strong>f <strong>the</strong> route map as <strong>the</strong>y did for <strong>the</strong><br />
Vision – need to bear this in mind and be clear on presenting a coherent<br />
story and exactly what <strong>the</strong>y are being asked to sign up to.<br />
A number <strong>of</strong> members felt <strong>the</strong>re needed to be a clearer definition <strong>of</strong> <strong>the</strong><br />
actions required, who might own <strong>the</strong> actions and <strong>the</strong> timeline. It was<br />
agreed this was most important for <strong>the</strong> more immediate actions – setting<br />
this information for actions that may be required in <strong>the</strong> medium to longer<br />
term was not so important at this time and also probably (a) not easily<br />
done and (b) open to uncertainty and debate.<br />
There was a discussion over whe<strong>the</strong>r one slide from <strong>the</strong> pack could be<br />
selected to represent <strong>the</strong> route map in a basic form – a number <strong>of</strong> <strong>of</strong>fers<br />
were made: slides 22, 27 and 28 all had elements <strong>of</strong> <strong>the</strong> overall plan but<br />
also shortcomings.<br />
It was agreed that <strong>the</strong> route map was <strong>the</strong> next stage from <strong>the</strong> vision<br />
already developed and that <strong>the</strong>re was probably a fur<strong>the</strong>r stage which<br />
was an ‘implementation plan’. This raised <strong>the</strong> question <strong>of</strong> how specific<br />
<strong>the</strong> route map should be on implementation and whe<strong>the</strong>r it should<br />
remain a high level document. The implementation plan would definitely<br />
require ownership to be specified.<br />
Accenture made <strong>the</strong> point that ‘surety’ decreased with time, agreeing<br />
with <strong>the</strong> point above, that while short term actions, implementation and<br />
goals needed to be defined and owned, going fur<strong>the</strong>r out <strong>the</strong>re were<br />
rapidly increasing degrees <strong>of</strong> uncertainty and decreasing benefit in<br />
trying to define things to tightly.<br />
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5.5 The Chairmen agreed that ownership and implementation were key issues<br />
going forward and should be considered by <strong>the</strong> ENSG Executive. While<br />
DECC and Ofgem could take overall responsibility for taking forward <strong>the</strong> route<br />
map as signed <strong>of</strong>f by <strong>the</strong> ENSG, it was open to discussion whe<strong>the</strong>r <strong>the</strong>re<br />
would be potential benefits from o<strong>the</strong>r parties, such as <strong>the</strong> network operators<br />
(e.g. ENA) and suppliers (e.g. ERA) owning parts <strong>of</strong> any implementation plan<br />
ra<strong>the</strong>r than a completely ‘command’ type approach downwards from DECC<br />
and Ofgem.<br />
Action 2: DECC and Ofgem to put forward proposals for an Implementation<br />
Plan to <strong>the</strong> next ENSG <strong>meeting</strong> planned for early in 2010.<br />
Action 3: Accenture to revise <strong>the</strong> Route Map slide deck to incorporate <strong>the</strong><br />
results from <strong>the</strong> discussion (including list <strong>of</strong> acronyms/glossary).<br />
Action 4: Accenture to draft a text Executive Summary <strong>of</strong> around 5 pages.<br />
Action 5: Accenture to, in co-ordination with DECC and Ofgem, produce a<br />
‘next steps’ document with draft Terms <strong>of</strong> reference and start and finish points<br />
and including proposals for a joint Government/Industry framework for taking<br />
forward <strong>Smart</strong> Grid implementation.<br />
5.6 The group moved on to discuss particular points within <strong>the</strong> route map slide<br />
deck. The following points were discussed:<br />
Is <strong>the</strong> set <strong>of</strong> example projects in <strong>the</strong> slide deck appendix comprehensive?<br />
It was felt this was an illustrative list <strong>of</strong> projects ra<strong>the</strong>r than a fixed<br />
‘recommended’ set that might be seen to exclude o<strong>the</strong>r possibilities.<br />
It was agreed <strong>the</strong> example projects covered a wide range <strong>of</strong> <strong>the</strong> issues<br />
that needed to be addressed in taking forward <strong>the</strong> smart grid route map<br />
and implementing smart grids in <strong>the</strong> UK.<br />
It was agreed that <strong>the</strong>re was potentially a benefit in mapping <strong>the</strong> projects,<br />
via a ‘tick-box’ matrix onto <strong>the</strong> issues to be addressed from <strong>the</strong> barriers<br />
assessment within <strong>the</strong> route map to assess completeness <strong>of</strong> coverage<br />
and to illustrate which issues each project could potentially address and to<br />
what degree.<br />
Action 6: Accenture to create a matrix <strong>of</strong> projects against issues addressed<br />
with tick boxes indicating how directly <strong>the</strong> project addresses <strong>the</strong> issue.<br />
5.7 The point was made that <strong>the</strong> route map focussed on <strong>the</strong> distribution networks<br />
– while it was accepted that <strong>the</strong> transmission system was ‘smarter’ than<br />
distribution at <strong>the</strong> current time, it should not be ignored. As NG were not<br />
represented at <strong>the</strong> <strong>meeting</strong> <strong>the</strong> representative from SP <strong>of</strong>fered to lead on<br />
taking this comment forward with <strong>the</strong> transmission operators (SPTO, SHTL<br />
and NG).<br />
Action 7: Transmission operators to consider <strong>the</strong> route map and comment on<br />
whe<strong>the</strong>r <strong>the</strong> transmission system is suitably addressed and what additions<br />
may be required.<br />
6 Next Steps and <strong>Smart</strong> Meter Implementation<br />
6.1 The Chairman invited <strong>the</strong> representative from <strong>the</strong> DECC smart meter team to<br />
provide an update on developments and <strong>the</strong> plans in this area.<br />
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6.2 Following <strong>the</strong> publication <strong>of</strong> <strong>the</strong> Government response to <strong>the</strong> smart meter<br />
consultation, <strong>the</strong>re is to be a period <strong>of</strong> engagement between DECC and<br />
Ofgem <strong>of</strong>ficials and <strong>the</strong> various stakeholders. This includes <strong>the</strong> Ofgem smart<br />
meter briefing event planned for 16 th December. There are a series <strong>of</strong> work<br />
streams to be taken forward with ei<strong>the</strong>r DECC or Ofgem leading. These will<br />
include:<br />
Consumer protection<br />
Data access<br />
Data protection<br />
Network grid issues<br />
Functionality (ENA are involved/will be involved with this).<br />
6.3 In <strong>the</strong> area <strong>of</strong> functionality <strong>the</strong>re is a key decision to be made around costs<br />
and benefits. O<strong>the</strong>r issues are how <strong>the</strong> non-domestic sector sits in <strong>the</strong> smart<br />
grid future, <strong>the</strong> need to resolve some issues around EU standards and <strong>the</strong><br />
timescales for <strong>the</strong>ir definition and approval.<br />
6.4 The comment was made that functionality can be defined reasonably quickly<br />
(with a caveat around <strong>the</strong> cost/benefit issue raised above) but <strong>the</strong><br />
communications system issue needs fur<strong>the</strong>r consideration.<br />
7 AOB<br />
7.1 In relation to <strong>the</strong> <strong>Smart</strong> grids Capital Grants Programme, AEA reported that a<br />
small number <strong>of</strong> potential applicants to <strong>the</strong> scheme had asked whe<strong>the</strong>r DECC<br />
could assist <strong>the</strong>m in identifying potential DNO and/or supply company<br />
partners. AEA (who are managing <strong>the</strong> scheme on behalf <strong>of</strong> DECC) asked <strong>the</strong><br />
members from network and supply companies if <strong>the</strong>y would be agreeable to<br />
being passed details <strong>of</strong> <strong>the</strong>se projects (along with <strong>the</strong> contact details). If <strong>the</strong>y<br />
were interested in taking any <strong>of</strong> <strong>the</strong> projects fur<strong>the</strong>r <strong>the</strong>y could contact <strong>the</strong><br />
potential partners. The representatives present agreed that this would be<br />
acceptable. In <strong>the</strong> case <strong>of</strong> <strong>the</strong> suppliers, as <strong>the</strong>re is incomplete<br />
representation on <strong>the</strong> ENSG, it was agreed AEA would send partner enquiries<br />
to ERA.<br />
8 Schedule <strong>of</strong> Meetings and Close<br />
8.1 It was agreed that as <strong>the</strong>re were a number <strong>of</strong> outstanding issues <strong>the</strong> group<br />
should convene by telephone conference to discuss <strong>the</strong> revised route map<br />
and <strong>the</strong> documents to be produced under <strong>the</strong> actions listed above in <strong>the</strong>se<br />
minutes.<br />
Action 7: Secretariat to arrange a telephone conference at a date TBA.<br />
8.2 The Chairmen thanked <strong>the</strong> members for <strong>the</strong>ir attendance and input and<br />
closed <strong>the</strong> <strong>meeting</strong>.<br />
-o0o-<br />
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